Vietnamese Minister of Planning and Investment Vo Hong Phuc and Japanese Ambassador to Vietnam Sakaba Mitsuo signed and exchanged notes on the aid resumption in Hanoi on March 31. 

As a result, the total capital pledged by donors for Vietnam in 2008 rose to US$6 billion compared to US$5 billion in 2007.

Japan’s ODA resumption testifies to the Vietnamese Government’s firm resolve to improve the legal climate, efficiently manage ODA projects and combat corruption.

Addressing the ceremony, Mr Phuc affirmed that the Vietnamese Government has always employed measures to ensure an effective and transparent use of ODA capital. He also said Vietnam and Japan agreed to set up a committee to supervise the bidding process and prevent corruption in ODA-related projects.

Vietnam will spend the $900 million package on four major projects, including an urban railway route in Hanoi, an environmental improvement project in the port city of Haiphong, a water drainage project in Hanoi and a project to improve the national road system.

Japan has always been Vietnam’s largest donor since 1992 and has so far committed ¥1.48 trillion in ODA for Vietnam. The Japan International Cooperation Agency (JICA) said Vietnam is Japan’s third largest aid recipients, just after India and Indonesia.